DoubleLine’s Jeff Sherman warns against buying Treasurys, likes gold

DoubleLine Capital’s Jeffrey Sherman believes the August rush into Treasurys may have been overdone and said that those worried over a potential economic slowdown in the U.S. may be better served buying gold.

Sherman, who serves as DoubleLine’s deputy chief investment officer, said in an interview with CNBC.com that following others into long-duration Treasurys could backfire if yields start to reverse course.

“Although there was this big momentum rally, they tend to come in bursts. And usually when you have these big movements, the bond market — like the stock market, like the credit market — tends to overshoot in both directions,” Sherman said on…